ITI 2007 TRADE PRIORITIES

ENFORCING THE WTO INFORMATION TECHNOLOGY AGREEMENT

The Information Technology Agreement (ITA) has proven to be an effective tool in increasing trade, jobs, and investment in the information technology sector, especially in developing countries.  As technology evolves and advances, some countries are removing IT products from duty-free coverage resulting in an effective "tax" on innovation.

• Maintain the Letter and the Spirit of the ITA: ITA members should make certain that duties on information technology products covered by the ITA, including products which are more technologically sophisticated, continue to be bound and eliminated in their customs schedules.

PROMOTING U.S. FREE TRADE AGREEMENTS

Building on commitments already achieved in the WTO and leading the way to enhanced multilateral trade liberalization, bilateral and regional Free Trade Agreements (FTAs) offer opportunities for deeper market access for U.S. companies. 2007 priorities include:

• Trade Promotion Authority (TPA) Renewal: TPA is critical to the negotiation of bilateral and multilateral trade agreements because it gives U.S. trade negotiators credibility at the negotiating table. It is also important to help American workers compete in the global economy by expanding Trade Adjustment Assistance (TAA).
• U.S. - Korea FTA: The FTA with Korea will present USTR the opportunity to significantly strengthen existing texts and the kinds of rules that are needed to address the unique challenges faced in the Korean market (i.e., “techno-nationalism,” government-driven protectionism and import-substitution).
• U.S. - Malaysia FTA: The tenth largest trading partner of the United States, Malaysia is an important player in the global value chain for high tech products.  Achieving solid progress in areas such as market access, strong intellectual property rights protection and foreign investment rights is a priority for the high-tech community. 
• Peru, Colombia and Panama: The high technology industry is a strong supporter of trade liberalization and the rules based trading system enforced by FTAs.

WTO ACCESSIONS & ENFORCEMENT

Nations seeking WTO accession must meet the standards of transparent, consistent and non-discriminatory rules, and commit to clear and consistent enforcement of new WTO obligations in order to establish a stable and predictable marketplace. 

• Russia: Renewal of PNTR for Russia and their accession to the rules-based multi-lateral trading system is a priority.  Work still remains to be completed in the working party talks, especially in the areas of enforcement of intellectual property rights and reform of Russia's encryption import licensing regime.
• India: India has made significant progress but work remains in the areas of: reducing taxes and tariffs applied to the IT, Consumer Electronics and components; eliminating foreign direct investment controls; eliminating restrictions on import of refurbished components for warranty purposes; promoting technology neutrality in the wireless sector; implementing regulations to allow VoIP private managed networks to interconnect with Public Switch Telephone Networks (PSTN) and increasing Internet telephony; and promoting competition in International Private Leased Circuits (IPLC) in India.

EXPANDING OPPORTUNITIES IN CHINA

The U.S.-China bilateral relationship is complex, but inextricably important.  As such, the high-tech community is committed to maximizing opportunities while working to constructively address significant challenges.  Critical issues include the enforcement of intellectual property rights, issues surrounding standards and conformity assessment, China’s accession to the WTO Government Procurement Agreement, and market access-related issues.  Successful resolution of these issues will require that we understand China’s concerns about rapid growth, reinforce positive actions, raise issues when appropriate, and provide support and education when needed. Working with the U.S. and Chinese governments and our colleagues in Beijing, ITI’s objectives are to maintain and expand market access in China, including monitoring and enforcement of China’s WTO commitments and ensuring non-discriminatory treatment of U.S.IT goods and services providers.

WORLD TRADE ORGANIZATION PRIORITIES

ITI supports the continued liberalization of trade and the strengthening of the global, rules-based trading system. 

• Eliminating Tariffs on IT/Electronics and Electrical Products:  Through an electronics/electrical sectoral negotiation in the non-agricultural market access (NAMA) talks, secure broad Member participation and support for: 1) zero duties for entire chapters of the Harmonized Customs Code relating to information technology (IT), telecommunications and electrical equipment, while allowing specific exceptions and/or phased-in implementation for specific products; and 2) mechanisms to ensure periodic review and expansion with respect to both Member participation and product coverage as pertains to all WTO agreements on IT/electronics/electrical products. 
• Eliminating Non-Tariff Barriers on IT/Electronics and Electrical Products:  Through sectoral negotiations and/or the Trade Facilitation talks, secure commitments that ensure that product testing, licensing, standards and certification requirements, certificate of origin mandates and customs procedures are fair, transparent and streamlined. Technology standards should be voluntary, industry-led and non-discriminatory.
• Promoting Trade in Digital Products: Establish valuation for all types of digital products carried on a physical medium based on the value of the medium only, building on GATT AD 4.1. Provide broad national treatment and most favored nation (MFN) commitments so products sold electronically by U.S. companies receive fair and non-discriminatory treatment; i.e., treatment no less favorable than their physical equivalents where such equivalents are relevant.  Make permanent the moratorium on the application of customs duties to electronic transmissions.
• Expanding Liberalization in Services:
  • Computer & Related Services: Obtain full market access and national treatment commitments for computer and related services at the “two-digit level” (CPC 84).  Also obtain full commitments in management consulting and related services to avoid confusion about overlap with IT-related consulting.
  • Telecommunications Services: Ensure non-discriminatory (and technology-neutral) access to and use of public telecom networks and services; achieve cost-based access to leased lines; and promote binding rules on technology neutrality throughout the telecommunications sector.
    
• Services and E-commerce:  Obtain liberalization for the full range of services that are essential for initiating and completing e-commerce transactions, to include, in addition to those listed above - advertising services, online payment services, content-based services and express delivery services.  Maximize liberalization for all other services that can be delivered electronically.
• Trade Facilitation: Improve the efficiency, transparency and predictability of cross border trade through a rule-based comprehensive agreement that contains meaningful disciplines and commitments, while maintaining the security of the supply chain.
• Liberalizing Government Procurement Practices:  Continue discussions to bring more participants into the WTO Agreement on Government Procurement.
• Strengthening Protection of Intellectual Property: Ensure effective implementation and enforcement of TRIPs by all WTO members and avoid expansion of compulsory licensing requirements.

Key issues: Expanding Opportunities in the Global Market

THE US-CHINA RELATIONSHIP IS IMPORTANT TO THE US IT INDUSTRY

Information Technology Industry Welcomes Completion of Korea – US Free Trade Agreement 04.02.2007

ITI Calls for Renewal of Trade Promotion Authority Supports Expanding Trade Adjustment Assistance 02.12.2007

ITI Submission on the United States - Korea Free Trade Agreement 03.24.2006

Permanent Normal Trade Relations (PNTR) status for Vietnam 07.11.06

Russia and the WTO 07.06.2006

ITI Submission on the United States -  Malaysia Free Trade Agreement 05.12.2006

Industry Case for Maintenance of the Information Technology Agreement (ITA)

European Commission Taxing Innovation in ICT Sector 05.12.2006